Jetstar, there are many ways to dry peppers. A lot has to do with how much humidity there is in your location. The way I dry peppers has always worked for us.
I use a toaster oven set at 140F. Cut the peppers in half lengthwise or into strips if you want it done faster. Remove the seeds or leave them (Your choice) sometimes, leaving the seeds makes the powder hotter in taste. Put them on a flat tray - like a metal cookie sheet and cook them until they are crispy dried out. Let them cool off and grind them up with a coffee grinder. Store the chili powder in an air tight jar just like you would for any other spice.
Cooking time varies on how thick the skin is.
Store bought peppers work just as well.
You could use the oven on your stove instead of a toaster oven.
A food processor would probably work, but coffee grinders do a wonderful quick job.
This a wonderful thing to do on a cool day because it keeps the kitchen a little warmer.
The scent of them drying smells very good to us
